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Pursuant to the authority of KRS 67.753(4), it is hereby determined that the apportionment provisions of KRS 67.753 do not fairly represent the extent of the engagement in the city of those, other than an employee, who are engaged in any franchise, trade, occupation, profession or other business both within and outside of the city; and, accordingly, the following described property factor is hereby added to the payroll factor and the sales factor provided in KRS 67.753 for the apportionment of the net profits of those, other than an employee, who are engaged in any franchise, trade, occupation, profession or other business both within and outside of the city.
(A) The property factor is a fraction, the numerator of which is the average value of the taxpayer’s real and tangible personal property owned or rented and used in the city during the computation period, and the denominator of which is the average value of all of the taxpayer’s real and tangible personal property owned or rented and used anywhere during the computation period. In the determination of the property factor:
(1) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight (8) times the net annual rental rate which is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from sub- rentals.
(2) The average value of property shall be determined by averaging the values at the beginning and ending of the computation period, but the City Administrative Officer may require the averaging of monthly values during the computation period if reasonably required to reflect properly the average value of the taxpayer’s property.
(B) The proportion of the total net profits everywhere of those, other than an employee, who are engaged in any franchise, trade, occupation, profession or other business both within and outside of the city that are subject to the occupational license fee established by this subchapter, shall be determined by multiplying the total net profits thereof everywhere by the quotient of the total of the payroll factor and the sales factor described in KRS 67.753(2) and (3), and the property factor described in division (A) above, that the franchise, trade, occupation, profession or other business had in the city during the tax period, divided by the total number of those factors that the franchise, trade, occupation, profession or other business had in the city during the tax period. The total number of those factors that the franchise, trade, occupation, profession or other business had in the city during the tax period will always be either one (1), two (2) or three (3). For example, if the franchise, trade, occupation, profession or other business:
(1) Had only the sales revenue factor in the city, during the tax period, without either the property factor or the payroll factor in the city, the total number of those factors that the franchise, trade, occupation, profession or other business had in the city during the tax period would be one (1);
(2) Had both the sales revenue factor and the payroll factor in the city, during the tax period, without the property tax factor in the city, the total number of those factors that the franchise, trade, occupation, profession or other business had in the city during the tax period would be two (2); or
(3) Had the sales revenue factor, and the payroll factor, and the property factor in the city, during the tax period, the total number of those factors that the franchise, trade, occupation, profession or other business had in the city during the tax period would be three (3).
(Ord. 2007-11-06, passed 12-10-07)
(A) Civil penalty. Each separate violation of this chapter is hereby classified as a civil offense, for which:
(1) The maximum civil fine required by KRS 65.8808(2)(b) that may be imposed for each separate violation of this chapter, is hereby established as five hundred dollars ($500.00);
(2) The specific civil fine required by KRS 65.8802(2)(c) that will be imposed for each separate offense and violation of this chapter if the person who has committed the violation and offense does not contest a citation therefor, is hereby established as one hundred dollars ($100.00); and
(3) An enforcement officer may, in lieu of immediately issuing a civil citation, give notice that the violation of this chapter shall be remedied within a specified period of time.
(B) Criminal penalty. Each violation of this chapter shall be a misdemeanor for which everybody convicted thereof in a court of competent jurisdiction shall be sentenced to pay a criminal fine not to exceed the maximum amount of five hundred dollars ($500.00) as set forth in KRS 534.050(2)(a) or a term of imprisonment not to exceed the maximum period of twelve (12) months as set forth in KRS 532.090(1), or both.
(Ord. 2007-11-06, passed 12-10-07)